1 MUTUAL COMMITMENT Management Report 2012
3 26,598 women and men constructing Covéa > 04 Convenience, Cooperation and Customer Focus > 06 More than a group, a skills source > 08 Interview with Thierry Derez 10 Governance 12 More than a leader, an efficiency lever > 14 MAAF 16 MMA 18 GMF 20 Specialised companies and related services 22 International Markets 24 Healthcare and Retirement Insurance 26 CSR 28 More than an insurer, a business visionary > 30 Covéa Procurement 32 Covéa AIS 34 Covéa Research & Development 36 More than an asset manager, a sound investor > 38 Asset management 40 Reinsurance Acceptances Organization and Financial Results 42 Consolidated Financial Statements
4 Key figures At 31 December 2012 Property & Liability no. 1 Personal Healthcare insurance no. 4 Commercial Insurance no. 3 Legal Protection no. 1 Business results LIFE AND NON LIFE PREMIUM 14.7 billion euros (+ 2.8%) POLICYHOLDERS AND CUSTOMERS 10.9(1) million VEHICLES INSURED 9.8(1) million HOME INSURANCE POLICIES 7.2(1) million Financial results NET INCOME (GROUP SHARE) 628 million euros SOLVENCY 392% EQUITY CAPITAL (GROUP SHARE) 9.6 billion euros 26,598 EMPLOYEES (IN FRANCE AND ABROAD) (1) Figures for French companies included in the Covéa scope of combination (excluding Carma).
5 02 03 The insurer for 1 in every 4 French households Covéa combines the three brand names of MAAF, MMA and GMF, together forming a powerful mutual insurance group. Each of the three insurance companies has a highly specific market position. MAAF is a general, mass market insurer for the general public and small business professionals. MMA is a multi-specialist, mass market and corporate insurer. GMF is a general insurer and the benchmark mutual insurance company for civil servants. Covéa is a Mutual Group Insurance Company (Société de Groupe d'assurance Mutuelle or SGAM), a flexible umbrella that allows the three brands to share certain resources and activities, and gives them an additional competitive advantage. The resulting synergies benefit the three brands and the policyholders, who enjoy lower premiums and more effective services. The organisational model implemented by Covéa gives the overall structure the financial stability and security essential in the present economic situation.
6 26,598 women and men constructing Covéa The Covéa group has 26,598 employees, including 20,816 in France. Covéa includes more than 20 brands in the insurance, finance and service industries. With writings in property insurance, life insurance as well as retirement, the Group's products form an integral part of the lives of their policyholders. Internationally, the Group operates in the United States, the United Kingdom, Italy and Luxembourg. It also holds stakes in other companies in Canada and Spain.
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8 Convenience, Cooperation and Customer Focus PRACTICALLY 11 MILLION POLICYHOLDERS Covéa has nearly 11 million policyholders. They are the core concern of the three companies, to ensure customer focus and convenience. Customer Focus: the exemplary nature of their customer focus can be seen every day in customer relations and claims management. Convenience: each company uses contrasting but complementary channels (branches, telephone, internet, social media) needed to give each policyholder a contact point that best suits them. MUTUAL VALUES All three companies have grown in France in the highly competitive personal insurance industry, and all three have became prime, competitive insurers under the Covéa umbrella. They share the same values and the same mutual beliefs. These are the foundations for their merger within Covéa. The SGAM first pooled MAAF and MMA in 2003, joined in 2005 by AZUR-GMF. The financial solidarity between the three companies is one of the cornerstones of the SGAM. It guarantees the sustainability of the companies, and thus stability inthe coverage and services offered to our policyholders. COOPERATION Year after year, Covéa has developed highly practical forms of cooperation wherever the financial issues justify it, and scale and efficiency play a key role. Today, the resulting synergies are beneficial for: Real Estate Purchasing International Markets Reinsurance Research & Development Information Technology Healthcare and Retirement Insurance.
9 06 07 COMMUNICATION I N INSURANCE E S U R A N C S U B S I D I A R I E S I N F R A N C E POLICYHOLDERS AND CUSTOMERS FINANCE IP AND AFFILIATED MUTUAL INSURANCE COMPANIES INSTITUTIONAL PARTNERSHIPS TECHNOLOGY AND INFORMATION SYSTEM I N T E R - C O M P A N Y CONTROL, SOLVENCY, ACCOUNTS, REPORTING S E R V I C E S A N D F I N A N C E ASSISTANCE INDEMNITIES SERVICES HUMAN RESOURCES GENERAL SECRETARIAT
10 More than a group, a skills so
11 08 09 urce Despite a very poor economic and financial context, the Covéa group recorded favorable business and financial results. This success is due to the dynamic culture and a policy of technical rigor applied by its brands, as well as the professionalism of Covéa staff.
12 Interview with Thierry Derez Chairman and CEO Our pricing accuracy will be more vital than ever before. With premiums in 2012 of close to 14.7 billion and a solvency margin more than 3.9 times higher than the regulatory requirements, Covéa continued its dynamic construction process. The business policy of the three brands and the technical rigour with which it was implemented were successful. To maintain that upswing in the current economic and financial environment, the Group will continue to develop synergies in order to offer policyholders increasingly innovative services within a pricing framework that is both fair and competitive.
13 10 11 How would you sum up 2012? 2012 was a satisfactory year for Covéa. We kept to our course of action, namely giving our core business precedence over any other consideration. We were both attentive to the needs of our policyholders and wary of a financial environment that was unpredictable but ultimately favourable for us, despite a lacklustre CAC 40 index, the Greek crisis and an enigmatic real estate market. Cooperation between the brands seems to grow every year. What importance do you give to the resulting inter-company action? Covéa serves the insurance business of our brands. It is our main means of improving our competitiveness and should not be gauged solely in terms of pricing, but also in terms of services. In other words, inter-company action under the Covéa umbrella allows the brands to pool their resources more efficiently, all in the interest of our policyholders. Will the Group continue to develop partnerships? Market data and outlooks are going to change. Those changes make the construction and implementation of partnerships even sounder, particularly in the field of healthcare and retirement insurance. They continue to be a growth area for the Group. The partnerships can be of different degrees: either purely technical or purely commercial, but some of them can also lead to the integration of other insurance companies and thus a shared future, as was the case with Apgis in 2011 and more recently with SMI who plan to join the Covéa mutual group insurance company. What are the business issues for 2013? In 2013, the business issues will continue to be the same. We must persevere in our growth, in terms of market share, with technical rigour and obtain what is explicit in one of our brand names, but applies to all three: "profitable development." We must also pay attention to the competition from bancassurance companies and the emergence of new distribution channels. More generally, what are the prospects for 2013? The economic and financial environment remains a concern, as illustrated by the turmoil affecting the situation of the euro. The risk of a sudden rise in bond yields is high. Most importantly, we have an economic crisis, with unemployment at a very high level, businesses that are facing difficulty or closing and therefore a contraction in the volume of insurable goods. Given that fact, our pricing accuracy will be more vital than ever before. We have a number of advantages allowing us to achieve that aim, including our financial soundness, one of the best on the market, compared with the other major European groups, but even more importantly, the professionalism of our teams.
14 Governance Covéa Management Committee (May 2013) Chaired by Thierry Derez, CEO, the Management Committee consists of deputy managing directors with various crosscompany responsibilities (e.g. finance, claims management, general and international secretariat, healthcare and retirement insurance), as well as deputy managing directors responsible for the operational steering of the brands. Of these, in addition to their function within the brands, two of them have a crosscutting assignment: human resources, research and development. From left to right. Hervé Frapsauce Deputy Managing Director MMA Insurance Étienne Couturier Deputy Managing Director, MAAF Jean Fleury Deputy Managing Director Covéa General Secretariat Sophie Beuvaden Deputy Managing Director Covéa Finance Joaquim Pinheiro Deputy Managing Director MAAF Resources and Covéa HR Thierry Derez Chairman and CEO Covéa, MAAF and GMF, Chairman of MMA Christian Baudon Managing Director, MMA Patrice Forget Deputy Managing Director, GMF Didier Bazzocchi Deputy Managing Director Covéa Healthcare and Retirement Insurance Philippe Renault Deputy Managing Director MMA Resources Laurent Tollié Deputy Managing Director GMF Insurance and Covéa R&D Michel Gougnard Deputy Managing Director Covéa AIS Jean-Claude Seys Vice-Chairman and Managing Director, Covéa
15 12 13 Creation of Covéa Cooperations In order to optimise and simplify its legal and financial organisation, the Group has created Covéa Cooperations. A structure lying halfway between a mutual insurance company (MAAF, MMA, AM - GMF) and the operating companies which carry out the Group's business, Covéa Cooperations holds all the shares of the operating companies. With this tool, Covéa seeks to increase its capacity to mobilize its resources and more easily seize opportunities for growth, and strengthen the solidarity between the different companies. This legal organisation will also help to anticipate the impact of new regulatory requirements, which require more clarity and traceability. Audit committee Setting up Covéa Cooperations has changed the ownership structure of the insurance companies within the Group. The new environment requires having an Audit Committee with an overview of all the structures. Recent regulations make it possible for a Mutual Group Insurance Company to set up an Audit Committee and thus exempt the insurance or reinsurance companies within its scope from meeting this requirement. A Covéa Audit Committee was thus set up at the beginning of It covers the entire span of the Group and can thus extend its scope of action to the consolidated financial statements. Audit Committee members (February 2013) Alex Capelle Pierre Vionnet Hubert Ivanoff Michèle Beyt Michel Roux Jean-Jacques Vouhé Michel Coursat Christian Delahaigue Anne-José Fulgeras Board of Directors At 31 December 2012, the Covéa Board of Directors consisted of the following 28 directors: Thierry Derez Chairman and CEO Jean-Claude Seys Vice-Chairman and Managing Director Danièle Bouchut Serge Dussaussois Marie-France Ferrand Didier Gardinal Jean-Philippe Gauduchon Gilbert Lebrument Michel Roux Rémy Verges LA SAUVEGARDE represented by Alexis Lehmann FIDÉLIA ASSISTANCE represented by Xavier Dejaiffe ASSISTANCE PROTECTION JURIDIQUE represented by Jean-Pierre Gualezzi ASSURANCES MUTUELLES DE FRANCE represented by Alex Capelle PRONY HABITATIONS represented by Christian Delahaigue DAS ASSURANCES MUTUELLES represented by Patrice Daudier de Cassini FORCE ET SANTÉ represented by Michèle Beyt LA GARANTIE MUTUELLE DES FONCTIONNAIRES represented by Hubert Ivanoff GMF ASSURANCES represented by Jean-Marie Iché GMF VIE represented by Michel Radelet MAAF ASSURANCES represented by Michel Castagné MAAF ASSURANCES SA represented by Bernard Barbottin MAAF SANTÉ represented by Charles Zanoni MMA IARD ASSURANCES MUTUELLES represented by Michel Coursat MMA VIE ASSURANCES MUTUELLES represented by Christophe Guettier MMA VIE represented by Mario Colaiacovo TÉLÉASSURANCES represented by Pierre Vionnet APGIS represented by Georges Cambour
16 More than a leader, an efficien
17 14 15 cy lever Through its brands, subsidiaries and specialised companies Covéa meet the insurance needs of all types of customer profiles, whether individuals, professionals or businesses - in France or abroad, regardless of the distribution channel chosen. The synergies developed within the Group also enable its policyholders to benefit from increasingly attractive and innovative services.
18 MAAF the quality price benchmark A more aggressive sales policy has been decisive in producing results. Étienne Couturier, Deputy Managing Director A BROKERLESS MUTUAL INSURANCE COMPANY, MAAF PROVIDES ITS POLICYHOLDERS WITH COMPREHENSIVE INSURANCE SOLUTIONS. Against a particularly difficult economic background, MAAF continued the growth momentum it has established in recent years saw market share gains in the car insurance and Multi-risk Home (MRH) Insurance sectors. In life insurance, the mutual insurance company succeeded in achieving a positive net inflow, despite the degraded market conditions. Focusing mainly on healthcare insurance, MAAF launched a joint offer, in partnership with Apgis, targeting very small businesses. The offer was well received by the market, and "Les Façonnables" immediately found their audience. In service, the mutual insurance company intensified its efforts in terms of customer focus with the introduction of a satisfaction survey and policyholder feedback system.
19 16 17 A customer-centric year The MAAF Covenant in action Accessibility, support, simplicity, responsiveness, recognition: 5 major commitments in the MAAF Covenant for each client. Collective healthcare accessible to all A recognised, key insurance company for professionals with "Les Façonnables", a product specifically designed for small businesses. Car credit: rate of 1.90% Car credit and insurance package offer: MAAF asserts its legitimacy in the car credit market. Brand awareness: MAAF No. 1 in Top-Of-Mind awareness With MAAF Palace, MAAF keeps its pole position among bank brands and insurance companies in the Top of Mind awareness figures for 2012, published by TNS - Sofres. Assistant Air : a new application As a responsible insurance company committed to the public health issues, MAAF has launched an "Air Assistant" application, which provides daily forecasts of air quality. Human relations: an important agreement An agreement was signed on the prevention of psycho-social risks, as part of a comprehensive prevention programme. THE CLIENT AND MAAF, A WINNING COVENANT IN 2013 April: Launch of the new personal health insurance offer "Vivazen." Like other brands of the Group, MAAF has reinforced the technical fundamentals of its core business, whether in terms of risk management, overhead or claims management, all of which are critical factors for success and sound financial health. The mutual insurance company will intensify its efforts in call centre services, essential for efficiency. As in 2012, positions will be created in information and communication technologies. 3.5(1) policyholders / customers million 3.7(1) vehicles insured million 2.3(1) homes insured million 7,320 employees (FTE) (1) Scope: MAAF ASSURANCES, MAAF SANTÉ and MAAF VIE.
20 MMA the leading insurance social network in France MMA is improving its profitability and quality of service. Christian Baudon, Managing Director AS A MUTUAL INSURANCE COMPANY BACKED BY A NETWORK OF GENERAL AGENTS, MMA APPLIES TO INDIVIDUALS, BUSINESSES, LOCAL AUTHORITIES AND ASSOCIATIONS. For several years, MMA has maintained a dynamic of profitable development. In 2012, growth in sales exceeded the overall market, for professional and business insurance, and supplementary healthcare insurance, two key markets. Many improvements made to MMA resources resulted in operational efficiency. The project to transform the information system is well underway. A central issue for the various business lines was the focus on the quality of customer care. Finally, MMA improved its good technical results by pursuing its programme to return to insurance fundamentals in terms of risk selection, portfolio monitoring and controlling the cost of claims, thus gaining in structural profitability. The company also posted a highly satisfactory level of solvency.
21 18 19 Highlights in customer relations and products Joint customer workshops The purpose: to bring together 15 customers three times a year, identify their needs, measure the level of satisfaction and "co-create" future products and services. MMA Retirement Solutions New retirement offers: innovative and customizable guarantees depending on the customer s situation and needs. Launch of the SME PRO offer Professionals talking to professionals: a new, completely redesigned multi-risk offer with a special "professional" section on E-Health With e-health website, MMA is closer to consumer s healthcare and well-being concerns. Facebook MMA took the silver medal for corporate commitment on Facebook for the banking and insurance sector (Mediaventilo barometer August 2012). Kindness day Or the promotion of goodwill at work, with concrete proposals to give new meaning to work and develop quality relationships. 2013: BOOSTING PROFITABLE GROWTH Backed by its drive to win new market share and customers, MMA intends to continue to develop its sales and seek structural profitability. Based on differentiation, the recruitment strategy for its general agents is highly reciprocal in nature: win new agents who win new market share. In its sales drive, MMA is also backed by its brokers and specialised networks. Projects to support the changes in the company and serve the regulatory projects (Solvency 2) remain priority objectives. The development of collaborative practices and well-being at work will continue. Cooperation between the various stakeholders and the commitment of our employees is more vital than ever to succeed in becoming the first social network in the insurance industry. 3.3 million policyholders / customers 2.7 million vehicles insured 1.8 million homes insured 6,591 employees (FTE)
22 GMF Assuredly human 2012: Strong sales, solid fundamentals. Patrice Forget, Deputy Managing Director THE BENCHMARK INSURER FOR CIVIL SERVANTS, GMF PROVIDES SERVICES AND CONTRACTS INSURING GOODS AND PEOPLE was a good business year, both in terms of growth in membership (2%) and in property and casualty insurance, particularly for cars. In life insurance, despite a sharp downturn on the market, GMF Vie, known for its prudent management policy, has performed well with positive net inflows and a high level of business in provident insurance. GMF now has a renovated and expanded range of contracts. After car insurance in 2008 and health insurance in 2010, GMF launched Domo Pass, a Multi-risk Home (MRH) Insurance product redesigned to better fit the needs of its policyholders and prospects. The Life insurance offer has been bolstered with Prêtiléa loan insurance. A new communication campaign entitled "GMF champions" with rugby players to embody the ongoing commitment of GMF alongside its policyholders has helped meet the twin objectives of brand greater awareness and support for network activity. Finally, GMF has remained attentive to its fundamentals, technical quality and control of overheads first and foremost, to ensure the leeway required for its future competitiveness.
23 20 21 A year marked by new products and services Multéo wins Le Revenu gold award Voted best euro life insurance contract and fund, Multéo has been acclaimed for its various technological applications. Launch of DOMO PASS The strengths of this innovative contract are its modularity and a complete range of coverage for an excellent quality / price ratio. GMF Vie: confirmations by SMS All commercial or management transactions are confirmed by SMS to reassure clients that their operations have been taken into account. Mon Numéricoffre A secure, confidential digital safe that s free of charge to store and share important documents. Special insurance coverage for students and medical interns With its long-standing experience in the public and private hospital sectors, GMF has created an offer for interns and healthcare students. A new step ahead for GMF Mobile After a makeover, GMF Mobile has broken new ground by offering policyholders access to all of their contracts through their GMF Mobile section. OBJECTIVE 2015: TO BE THE BENCHMARK INSURER FOR CIVIL SERVANTS Growth in business and sales is imperative in order to cope with the additional costs and financing of investments without affecting the competitiveness of our pricing. A new claims information system is currently being implemented. The challenge is to design a scalable base system to adapt the management of claims to future customer needs. The Internet has become a major channel for providing information and quotes: in 2013, a new policyholder section will meet the aims of the mutual insurance company s multi-channel approach. 3.3 million policyholders / customers 3 million vehicles insured 2.5 million homes insured 5,956 employees (FTE)
24 Specialised companies and related services Additional solutions for Covéa policyholders MAAF, MMA and GMF have enhanced their property and liability insurance offers with a range of legal costs and protection policies through several specialised companies (Covéa Risks, Covéa Fleet, Covéa Caution and NEXX Assurances) as well as related services (DAS, APJ -Assistance Protection Juridique and Fidélia Assistance). COVÉA FLEET Asubsidiary of MAAF and MMA, and the only insurer in France specialising in the fleet market, transportation and freight, Covéa Fleet is backed by a network of over 3,000 business brokers (networks of agents, brokers and employees). Overall, for 2012, sales amounted to million. The company recorded an increase in each of the branches, particularly in the free provision of services business, representing 12% of turnover. COVÉA RISKS Asubsidiary of MMA, Covéa Risks works exclusively with brokers and maintains business relationships both with large international brokerage groups as well as with brokers on the national or regional scale. It offers its business brokers a full range of property and casualty products, mainly for the professional markets (package offers for the trade, tertiary and liberal professions sector (CSPL) and the car industry) and for businesses (package and custom offers for SMEs), as well as for the private individual market (Car, Multirisk Home (MRH) Insurance, Healthcare and Retirement Insurance) has resulted, in particular, in the deployment of a new information system dedicated to processing customized business and marketing a new package offer for professionals and SMEs. At the same time, Covéa Risks continued to improve its quality of service for its business brokers. Its premium in 2012 amounted to 586 million euros (+ 0.3%). It was marked by the impact of the economic crisis on the construction market, local authorities and liberal professions offset by the sales performance of the trade, tertiary and liberal professions sector (CSPL) (1) industry, trade and tertiary sector (ICS) (2) and the car market. COVÉA CAUTION F or over 20 years, Covéa Caution has focused on three financial guarantee segments, in different sectors of activity: "legally required" sureties which must be taken out by legal, real estate and tourism professionals in particular; building sureties (for real estate building professionals), and sureties for suppliers and other sectors (services and transport). Despite a difficult economic environment, in 2012 Covéa Caution realised premiums of EUR 10.2 million. Covéa Caution launched an innovation in 2012, a new product for wind farm operators (covering site reclamation) and continued the deployment of its extranet for its homebuilder customers. The responsiveness of its teams, the quality of its underwriting and portfolio monitoring, have allowed Covéa Caution to retain its status as a major player in the financial guarantees market. NEXX ASSURANCES NEXX is a "remote" insurer, which markets its products through three channels: - direct sales via the Internet and telephone, - affinity offers, - partnerships ("turnkey" insurance solutions for companies outside the insurance sector, who want to extend their business activities). In addition, NEXX Services provides support by telephone to MAAF for Internet sales and insurance for professionals. In 2012, the NEXX Assurances portfolio included more than 163,500 contracts for 93,000 customers. (1) Trade, Tertiary, Liberal Professions (2) Industries, Trade, Tertiary
25 22 23 DAS DAS is the legal protection company for brokered insurance companies of the Covéa group (MMA, Covéa Risks, Covéa Fleet), and covers all types of clients with individual or group policies. DAS has refocused on its core business: Legal Protection Insurance (PJ). It is also expanding on the affinity market by offering compensatory coverage. In 2012, DAS mobilized its sales teams to promote the "Legal Protection reflex" via the network of MMA agents, signing 104,000 new contracts as a result, an increase of 20%. The value of its portfolio increased by 7% over the year. In terms of affinity coverage, DAS strengthened its position, in particular for performance cancellations and guarantees covering the theft or breakage of mobile devices. It contributed to the creation of the affinity insurance guarantee federation (FG2A) for greater transparency with respect to the consumer. In 2012, the premium of the DAS amounted to 257 million euros, up 0.7% compared with 2011 (31% in Legal Protection, 17% in unpaid rent, 50% in Pecuniary Loss). APJ Assistance Protection Juridique (APJ) is the legal protection insurer for MAAF and GMF policyholders. It offers extensive ranges of products for private and professional policyholders. In order to improve its quality of service to customers, APJ has extended its office opening hours to The APJ portfolio comprises more than 2.5 million contracts, while some 3.9 million policyholders are covered by a group contract. In 2012, APJ achieved premium of million euros, up 4.5%. FIDÉLIA ASSISTANCE As the Assistance company for Covéa brands, Fidélia Assistance intervenes on a 24/7 basis, in France and around the world to assist clients. Its areas of expertise are medical assistance (repatriation, medical evacuation), vehicle assistance (repairs, towing), home help (troubleshooting, locksmith and plumbing, electrical breakdowns, etc.) and personal services (housekeeping, childcare, tutoring, etc.). Fidélia Assistance co-brands its services for most of its customers. It also provides the assistance services for insurance companies such as La Mutuelle de Poitiers, mutual insurance companies such as Mutuelle Générale de la Police, Mutuelle Nationale Territoriale, GMPA, and Cogémut, and financial institutions such as La Banque Postale, Sofinco and Natixis. In 2012, business claims volumes grew 8.6% compared with The increase can be explained by the car breakdowns and accidents subsequent to the period of extreme cold in February. The other months of the year were nevertheless marked by sustained activity. Peaks of business, otherwise unseen over the last three years, were even recorded in August. Fidélia was able to meet the high level of Assistance business thanks to the mobilization of all of the permanent staff and the recruiting of 475 seasonal staff. In 2012, Fidélia Assistance posted premium of EUR 400,2 million, serving nearly 15 million policyholders. Some 1.2 million claim files were opened and 7.9 million calls were handled. The company has more than 1,000 employees at three sites (St. Cloud, Tours and Nantes). Through their involvement and dynamism, the overall customer satisfaction rate remained high at 96.2%.
26 International Markets Successful Diversification Covéa has been present on the international markets for over thirty years. Although the Group's development is mainly based on its activities in France, after streamlining its operations, diversification needs led the Group to cautiously increase its sales turnover outside France. In 2012, more than 10% of the premiums were collected by subsidiaries outside France, without counting brokerage business in the UK and Free Provision of Services business. Through its brands, Covéa has been present in Europe and North America for a long time, through 100% owned subsidiaries or by the interplay of interests in P&C and life insurance. The development of international business is an important issue for the Group, based on an approach of risk diversification amplified by the prospect of Solvency 2 rules. With premiums which almost doubled in 2012, the policy of opening the international markets has paid off. Covéa now has more than 5,700 employees abroad. INCREASING SYNERGIES 2012 was marked by the creation in the UK of Covéa Insurance, after the merger in October, of its subsidiaries MMA Insurance, Provident and Gateway. The primary objective was to implement synergies and achieve a more significant scale in the UK market. Covéa immediately reintroduced claims management, previously outsourced to MMA Insurance and Gateway. It is part of the Group s strategic approach, designed to fully control the management of its claims in order to control costs and provide the best quality service to its policyholders. The Swinton firm of brokers is currently reorganizing its business processes. A multichannel approach is being developed. In parallel, the two British subsidiaries, an insurer and a broker, with complementary activities, are exploring the opportunities of working better together. In Italy, with its subsidiary Bipiemme Vita, Covéa set up an effective partnership with Banco Popolare di Milano. It has produced results. The Bipiemme Assicurazioni subsidiary, which was built up from scratch in 2011, has developed into the home insurance and credit insurance markets before launching a car insurance offer in These subsidiaries form an interesting series of text benches for the Group, with specific know-how. Bipiemme Vita, for example, is the only subsidiary to practice bancassurance in life insurance within the Covéa group. It is the Group company that sells the most contracts in units of account. Caser, a Spanish company in which Covéa holds a 20% stake, was affected by the difficulties encountered by the Spanish Savings Banks. In 2013, once restructuring of the Banks has been completed, the situation should evolve more favourably. For the last twenty-five years Covéa has also maintained a very constructive partnership with La Capitale, a Mutual Insurance Group based in Quebec. In this context, Covéa holds stakes of 30% and 20% in two of its subsidiaries. SELECTIVE GEOGRAPHICAL LOCATIONS The Group is present with its subsidiaries in the UK, Luxembourg, Italy and the United States and through stakes in insurance companies in Spain and Canada. To feed its external growth, Covéa focuses exclusively on developments in North America and Western Europe, a choice motivated by the wish for overall control, good economic visibility and a predictable business environment. PRAGMATIC DIVERSIFICATION STRATEGY In 2012, several acquisition possibilities were studied, none responded to the high standards set by the Group. Covéa is highly attentive to all the possibilities of diversification abroad. Potential acquisitions or partnerships will be selected pragmatically, based on the intrinsic qualities of the companies concerned, their business environment, their potential complement to Covéa, and their price.